A percent allocation management module , commonly known as PAMM , also sometimes referred to as percent allocation money management , describes a software application used predominantly by foreign exchange forex brokers to allow their clients to attach money to a specific trader managing one or more accounts appointed on the basis of a limited power of attorney.

FOREX*PAMM

PAMM solution allows the trader on one trading platform to manage simultaneously unlimited quantity of managed accounts. Depending on the size of the deposit each managed account has its own ratio in PAMM. Trader's activity results trades, profit and loss are allocated between managed accounts according to the ratio. Because currency trading and other forms of arbitrage achieve profitability within very narrow margins, typically, a PAMM system allows more money to be brought into play while distributing the risk of one trader across usually multiple investors.

Depending on funded amounts different ratios are applied for managed account for ratio calculation all amounts are converted in USD equivalent based on market rate. The trader's own money remains at risk, which theoretically reduces the chance of irresponsible management of the combined funds.

PAMM is actually a more advanced descendent of "LAMM", which is a "lot allocation management module".

Alpari launched the PAMM service in and registered PAMM-account trademark in Depending on which currency with which the customer has funded their own account, the ratio calculation of each customer's share is typically converted to United States dollar amounts. In this infographic example, there are four investors each with a different amount of risk capital that choose the same money manager.

One book mentions that Forex Bot Limited is one type of PAMM software that ensures that "all accounts are given their appropriate signals, traded together in a PAMM account.

From Wikipedia, the free encyclopedia. The Ed Ponsi Forex Playbook: Strategies and Trade Set-Ups.

How Forex PAMM Accounts Work | Investopedia

John Wiley and Sons. Retrieved 8 October Retrieved from " https: Foreign exchange market Financial software.

PAMM Accounts Rating. FXOpen Best PAMM Managers List.

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